Revamping the DND IT Ecosystem: Unveiling Opportunities for Enhanced Usability, Customer Delight, and Sales Acceleration, Coupled with a Flourishing IT Growth Blueprint

Assignment Taken

NMO S5 FINAL | BUSINESS CASE SCENARIO - 15

Case Understanding

Daily Needs Delivery (DND) is an Indian daily need delivery startup founded in 2020 by Sam Malhotra and Rajish Gupta. Operating in Bengaluru, Delhi, and Hyderabad, DND offers a range of daily essentials, including milk, paneer (cottage cheese), and curd. The company has experienced rapid growth, achieving annual sales of INR 117.45 crores in FY 2021-22. However, DND faces several challenges that threaten its continued success. Key Challenges: • Missing Deliveries: Consumers have reported missed deliveries, with delivery partners claiming they delivered the products and consumers denying receipt. • Delivery Partner Reliability: Delivery partners are suddenly not reporting to duty, disrupting deliveries and leading to product loss. • Product Issues: Consumers have reported receiving wrong or missing products, and some have complained about foul smells and bad taste. • Inventory Loss: DND loses 0.2% of its inventory due to perishability. • Subscriber Complaints: Salespeople have sold subscriptions in non-dense areas, but DND is hesitant to start service due to cost concerns, leading to subscriber dissatisfaction. • Competition: Traditional competitors and new entrants are exploiting DND's challenges, potentially attracting customers. This case emphasizes the need for a holistic approach integrating technology, data analytics, and operational strategies to tackle challenges and leverage opportunities for Daily Needs Delivery LLP's future growth and success.

BCS Solution Summary

Daily Needs Delivery (DND), an Indian daily essential delivery startup, grapples with growth hurdles stemming from customer grievances, employee absenteeism, product quality lapses, and inventory losses. To tackle these challenges, DND must adopt a holistic approach centered on elevating customer service, bolstering employee engagement, refining product quality, and optimizing inventory management. The IT and Business Analytics Department at DND can focus on various areas of improvement, including: • Real-time tracking and notifications • Streamlined refund and complaint resolution process • Educational resources for customers • Continuous monitoring and iteration • Customer engagement and communication • Investment in customer support New features suggested for the DND app-based ordering system and delivery: • Real-time tracking and notifications for deliveries • Streamlined refund and complaint resolution process • Educational resources for customers to generate awareness about new features • Customer engagement and communication to engage customers effectively • Quality assurance measures to ensure product freshness and integrity upon delivery • Feedback mechanism improvement to report missing deliveries, wrong products, or quality issues directly • Expansion strategy with data-driven insights to initiate services in non-dense areas • Enhance user experience (UX) for app's usability based on data analytics Budget Allocation from IT-BA department: • Merchant Partnership Expansion (20%) • App Maintenance (15%) • Route Optimization Technology (18%) • Machine Learning for Predicting Demand (20%) • Association Algorithm for Recommendations and Bundling (15%) • Integrating QR Code/OTP-Based Delivery Verification (12%) Key Performance Indicators (KPIs) for the DND app: • Sales Data • App Installations • Customer Engagement • Customer Satisfaction By focusing on these areas and implementing the suggested features, DND can improve its customer service, enhance employee engagement, maintain product quality, and minimize inventory losses. This will ultimately lead to increased customer satisfaction and drive the company's growth. This strategy encompasses multifaceted enhancements across delivery operations, customer interaction, app functionality, and data-driven optimizations, positioning DND for enhanced efficiency, customer satisfaction, and sustainable growth.

Solution

Daily Needs Delivery (DND) is an Indian daily need delivery startup that has experienced significant growth since its inception in 2020. However, the company is facing several challenges, including customer complaints regarding missing or incorrect deliveries, employee absenteeism, product quality issues, and losses due to perishable products. These challenges are threatening to erode customer satisfaction and hinder the company's growth potential. To address these issues, DND should implement a comprehensive strategy that focuses on improving customer service, enhancing employee engagement, maintaining product quality, and minimizing inventory losses.

Areas of Improvement

The IT and Business Analytics Department at Daily Needs Delivery (DND) can focus on various areas of improvement:

1. Real-time Tracking and Notifications

• Implement robust real-time tracking for deliveries, allowing customers to track their orders from the warehouse to their doorstep.
• Send proactive notifications to customers regarding their delivery status, estimated arrival times, and any changes or delays.

 

2. Streamline Refund and Complaint Resolution Process

• Simplify and expedite the refund process for dissatisfied customers to enhance their experience.
• Establish a dedicated team to handle complaints promptly and efficiently, resolving issues in a timely manner.

 

3. Educational Resources for Customers

• Offer guides or tutorials within the app to educate users on using different features effectively.
• Provide information on the benefits of subscription services and how to maximize their utility.

 

4. Continuous Monitoring and Iteration

• Implement regular reviews and assessments of app performance and customer feedback.
• Use data analytics to identify trends and areas for improvement, and iterate the app based on these insights.

 

5. Customer Engagement and Communication:

• Develop a comprehensive communication strategy to engage customers effectively.
• Use targeted push notifications, emails, or SMS campaigns to inform customers about new services, offers, or updates on their subscriptions.

 

6. Investment in Customer Support

• Increase investment in customer support teams to handle queries, feedback, and complaints effectively.
• Ensure round-the-clock availability and multichannel support options for customers.

 

7. Quality Assurance Measures

• Strengthen quality control measures to ensure product freshness and integrity upon delivery.
• Implement strict checks and balances to prevent issues related to foul smells, bad taste, or incorrect products.

 

8. Feedback Mechanism Improvement

• Develop and promote an easily accessible feedback mechanism within the app.
• Integrate options for customers to report missing deliveries, wrong products, or quality issues directly through the app interface.

 

9. Expansion Strategy with Data-driven Insights

• Utilize business analytics to identify viable expansion areas with potential demand for services.
• Develop a data-driven strategy to initiate services in non-dense areas by analyzing market potential and customer behavior patterns.

 

10. Enhance User Experience (UX)

• Conduct a thorough analysis of the app's usability through user feedback and data analytics.
• Implement intuitive and user-friendly features such as easy navigation, personalized recommendations, and simplified subscription processes.
• Optimize the app for different devices and ensure a seamless experience across platforms.

By focusing on these areas, the IT and Business Analytics Department can align their efforts with the principle of customer centricity, driving app adoption by enhancing user experience, resolving issues promptly, and leveraging data-driven insights to improve service quality and expand the customer base.

New features suggestion for DND app-based ordering system and delivery

A. The features listed below have been suggested from a point of view of interaction with the end user consumers who can see and interact with the platform making use of the feature.

The features listed also try to curtail majority of the areas of improvement identified in the previous section.

1. Real-time Tracking and Notificationsfor deliveries

• 1a. Integration with OSM Maps to give the delivery partners idea of the route and optimise the routing algorithm for minimum delivery time
• 1b. GPS tracking capabilities for customers can track real time the delivery just like in apps Zomato, Swiggy.

2. Streamline Refund and Complaint Resolution Process

• 2a. Implement QR code or OTP-based delivery verification
• 2b. Instant Refund triggered upon QA status confirmation for cancelled orders

3. Educational Resources for Customers to generate awareness about new features

• 3a. Provide in-app tutorials, short videos to inform about new features just like how Whatsapp doing for new feature over Stories.

4. Customer Engagement and Communication to engage customers effectively

• 4a. Push targeted notifications to customers every night with offers over products to modify their calendar for purchase
• 4b. Auto triggered SMS about any change in subscription plans or new announcement like offers

5. Quality Assurance Measures to ensure product freshness and integrity upon delivery

• 5a.  A QA check button on the end user screen upon delivery and the option to refuse a delivery when QA check not passed.
• 5b. The QA check button will work on algorithm mandated by regulatory bodies like FSSAI for visual/touch based QA of milk products.

6. Feedback Mechanism Improvement to report missing deliveries, wrong products, or quality issues directly

• 6a. Introduce a feedback collection system through push notifications or short surveys before subsequent orders.
• 6b. Introduce FAQ document covering guidelines for common issues likely to happen like missing delivery etc. to reduce #complaints

7. Expansion Strategy with Data-driven Insights to initiate services in non-dense areas

• 7a. Introduce delivery of groceries on pre-order on pilot basis and then scale (diversify) as a separate section just like Swiggy Instamart
• 7b. Once revenue targets met from business optimization in 3 cities, expand model to more cities (geography expansion). An option on home screen to select ‘city’ to order

8. Enhance User Experience (UX)  for app’s usability based on data analytics

• 8a. Integration with other payment options like Gpay, PhonePe, COD option besides wallet recharge.
• 8b. Working out a lite version of the application to operate in low internet connectivity.
• 8c. History of orders placed, visibility of issues raised current status and tracking via ticket-based system.

B. The features listed below have been suggested from a point of view of non- interaction with the end user consumers or backend logic to enhance and elevate the customer experience with DND platform overall.

1. Building of route optimization algorithm to reduce delivery time and manage the demand with existing count of delivery personals.
2. Building rain detection algorithm to predict the rain hours based on weather forecast and updates and plan deliveries likewise.
3. Demand forecast model to predict the demand and storage for inventory which will help reduce losses for storage because of perishable nature of milk products.
4. Build a recommender system for subscribed users to suggest them ordering in bundles based on past history (ex. A customer ordering paneer only every Saturday and milk everyday so system triggers an alert reminding to add paneer to cart)

Budget Allocation from IT-BA department

This includes cost projection for some in-flight projects implementation as listed below and in long term rolling out the suggested features.

 

Allocated Budget of INR 1 Crore across key categories for the next financial year:

1. Merchant Partnership Expansion (20%):

Budget Allocation: INR 20 Lakhs

• Initiating and expanding partnerships with local merchants to enhance product offerings.
• Developing and maintaining APIs for seamless integration with merchant systems.
• Implementing technology solutions for efficient order processing and inventory management.

 

2. App Maintenance (15%):

Budget Allocation: INR 15 Lakhs

• Regular updates, bug fixes, and feature enhancements for an optimal user experience.
• Security upgrades and compliance with the latest mobile operating systems.
• User interface improvements based on feedback and analytics.

 

3. Route Optimization Technology (18%):

Budget Allocation: INR 18 Lakhs

• Investing in advanced routing algorithms for delivery efficiency and reduced transit times.
• Integrating real-time traffic data and geospatial analytics for route adjustments.
• Enhancing GPS tracking capabilities for accurate and timely deliveries.

 

4. Machine Learning for Predicting Demand (20%):

Budget Allocation: INR 20 Lakhs

• Developing predictive models to forecast demand based on historical data and customer behavior.
• Implementing machine learning algorithms for dynamic pricing strategies.
• Analyzing external factors like weather and events to refine demand predictions.

 

5. Association Algorithm for Recommendations and Bundling (15%):

Budget Allocation: INR 15 Lakhs

• Implementing algorithms for product recommendations based on customer preferences and purchasing patterns.
• Developing bundling strategies to increase the average order value.
• Continuous optimization based on real-time data and user feedback.

 

6. Integrating QR Code/OTP-Based Delivery Verification (12%):

Budget Allocation: INR 12 Lakhs

• Implementing a secure and efficient QR code or OTP-based delivery verification system.
• Enhancing app features for generating and scanning QR codes.
• Ensuring real-time verification and order completion.

 

These allocations aim to optimize the utilization of the IT & BA department budget for enhancing technology infrastructure, improving app functionality, and implementing innovative solutions to drive efficiency and customer satisfaction.

Key Performance Indicators for DND app

• Sales Data: DND's sales data indicates strong growth, with considerable annual revenue. However, operational challenges are affecting the overall efficiency and profitability.

  Measured by average value of order per customer, Cost per Acquisition (CAC) of new customer, Monthly Recurring Revenue (MRR) etc.

   

• App Installations: Active and inactive app installations reflect both growth and a need for better user engagement strategies.

  Measured by MAU, DAU (Monthly/Daily Active Users)

 

• Customer Engagement: Reflects adoption of the app by its userbase.

  Measured by Stickiness (DAU/MAU), Churn rate (users leaving the app), Bounce rate (customers not completing the order cycle), # BHIM API calls for payments, # wallet recharges, wallet value per user, #deliveries completed etc.

 

• Customer Satisfaction : Reflects the enhancements/refinements that can be done to app to improvise the overall app user journey.

Measured by CSAT rating (Customer SAtisfaction Test), customer feedback and complaints

Conclusion

By implementing these recommendations, DND can effectively address the challenges it faces and strengthen its position in the competitive Indian daily need delivery market. By prioritizing customer satisfaction, employee engagement, product quality, and inventory management, DND can foster customer loyalty, enhance operational efficiency, and achieve sustainable growth.

Attached File Details

View Attachment file (NMO Finals_Agile Stategists_Komal_Kolte.pptx)

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Budget allocation for IT-BA department